Introduction 

The global economy has become wealthier over the last 20 years, but as the RENGO discussion paper shows: 

- 4/5’s of the world population remains detached from this growth in wealth; 
- Inequality has increased between countries - the gap in incomes between the poorest fifth of the world's population and the richest fifth widened from 30-to-one in 1960 to 60-to-one in 1990 and to 74-to-one in 1995; 
- Relative poverty and inequality has increased in OECD countries; 
- Since the Asian crisis insecurity has increased and many workers have been pushed back into poverty and unemployment. 
 

I have been asked to talk of the European experience as an example of a concrete response to globalisation. It is relevant because unlike other regions in the world European intergovernmental political and economic institutions are more developed and  therefore give greater opportunities for governing markets. 
This is still however a source of strong differences. For many conservative politicians and some parts of business, European integration is purely about extending deregulated market forces in a more extreme form. For trade unions and the centre- left it is about establishing accountable and democratic institutions at European level which can govern markets and protect social goals. But some on the extremes of the political spectrum would like to return to purely nationalist responses or to produce a "fortress Europe" isolated from the outside world. 
 

Trade Union Priorities in European Integration. 

I would mention four priorities for developing European Integration into an effective response to globalisation. 

I -  Europe has to play a more active and positive role in international economic co-operation. One part of the US experience over the last seven years is that is that growth oriented economic policy works. There is now a crucial choice as to whether European Economic and Monetary Union and the policies of the European Central Bank will be used to develop a high growth, high employment policy or to repeat the restrictive policies of the past. There is now a debate over stance of policy and institutions. At the same time Europe has to be a positive force for re-regulating international financial markets. We have to “throw some sand in the wheels of finance”. This will require a full democratic participation because bankers will always say no to regulation of markets. 
 

II - There is much talk of a European Social Model. I don't much like the term because we need a socially acceptable model of competitiveness, which doesn't just apply to Europe. 
The following elements of this model are key. The understanding that:- 

- Low pay is not the solution to unemployment but part of the same problem; 
- Lifelong learning - education, training, recurrent education, certification requires union support; 
- Non-hierarchical work organisation - rights and security are necessary in the firms; 
- We need to modernise but not individualise the welfare state; 
- The Public Sector still represents 40% on average of GNP in OECD countries - can’t just be transfer payments or behaving the same on the private sector - performance of economies depends crucially on governance.

III - A third priority is to develop an effective response to multinational enterprises. In Europe legislation is now in force that obliges companies with more than 1000 employees to establish European Works Councils made up of worker representatives in the countries where the company operates. This is giving an opportunity to the International Trade Secretariats and European Trade Union Committees to develop international agreements with multinationals. We also have to harness the new agenda of the "social accountability" of business reflected in the fact that the stock market value of businesses is highly vulnerable to the reputation and public image of the company. In the OECD TUAC is currently pressing for the revision of the Guidelines on Multinational Enterprises to include an effective implementation procedure. 

IV - Europe must also work to guarantee core labour standards. Much said in Asia about imposition of Western values but trade has gone beyond frontiers. Rules exist to guarantee investors’ or intellectual property rights - Why not then to guarantee workers’ rights; these issues will come to the fore in the WTO Ministerial in Seattle, in November. It is also said in Asia that this would be protectionist. This is not the European union interest where less than 1% of GDP is traded with low-income countries. 
 

Conclusion 

The RENGO paper poses the correct questions how to make the trade union response more concrete. Strategically I believe should be we should focus on what we can and should change and not be distracted by what we cannot or what is not desirable to change. 

The central issue is therefore the policy response to globalisation. 
People want two things: 

- Economies which work and create good jobs; 
- Societies, which are fair - do not exclude large parts of their population.